India records lowest crude oil production in seven years

India produced 32,642 thousand metric tonne (TMT) of crude oil in the eleven months between April 2017 and March 2018, a marginal 1 per cent decline as compared to the output in the same period last fiscal (April-Feb 2016-17), and a record seven year low, according to data sourced from the Petroleum Planning and Analysis Cell (PPAC), an arm of the oil ministry.Bilal Abdi | ETEnergyWorld | Updated: July 31, 2018, 14:54 IST

New Delhi: India produced 32,642 thousand metric tonne (TMT) of crude oil in the eleven months between April 2017 and March 2018, a marginal 1 per cent decline as compared to the output in the same period last fiscal (April-Feb 2016-17), and a record seven year low, according to data sourced from the Petroleum Planning and Analysis Cell (PPAC), an arm of the oil ministry.

In February 2018, oil production dipped 2.36 per cent to 2,731 thousand tonne (TMT). The dismal performance is attributed to lower than expected output from key wells operated by state-run Oil and Natural Gas Corp (ONGC), Oil India (OIL) and fields operated by private companies. The lower output dampens the prospect of achieving the government’s target of 10 per cent reduction in energy import dependence by 2022.

Cumulative natural gas production for the period April–February 2017-2018 grew 2.47 per cent to 29,867 million standard cubic meter (MMSCM). For February alone, gas production was reported down 1.52 per cent to 2,484 MMSCM against the corresponding month las fiscal.

PPAC data showed February’s oil production dipped due to poor performance of fields under ONGC and under Production Sharing Contracts (PSCs). The decline in gas production in the month was attributed to poor performance of acreages under OIL and PSC fields.

The country’s gross petroleum imports in value terms jumped 25 per cent to $92 billion in the April-Feb 2017-18 period on the back of higher global oil prices. In February alone, the import bill was recorded up 25 per cent to $9.1 billion, data showed.

ONGC’s PERFORMANCE

The state-run explorer, which alone produces around 60 per cent of the nation’s crude oil, witnessed a marginal 0.41 per cent increase in its crude production at 20,370 TMT during April-February 2017-2018. In February, ONGC’s output dipped 3.27 per cent to 1,684 TMT.

The company’s gas production rose 6.46 per cent to 21,416 MMSCM cumulatively in the April-February period and a marginal 1.52 per cent to 1,800 MMSCM in February.

OIL PERFORMANCE

For OIL, the country’s second-largest oil and natural gas exploration PSU, oil production rose by 4.37 per cent to 3,094 TMT in April-February period, but remained flat at 261 TMT in February. Natural gas production by the firm declined 8.5 per cent to 5,806 MMSCM in April-February 2017-18. In February alone, the production was down 9.4 per cent to 475 MMSCM.

PERFORMANCE OF FIELDS UNDER PSCs and JVs

Oilfields under Production Sharing Contracts (PSCs) operated by Joint Ventures (JVs) or private companies witnessed production declining by 1.14 per cent to 787 TMT in February. Cumulatively, crude production from these fields declined over 5 per cent to 9,178 TMT in the April-February period.

Natural gas production from PSC fields declined by over 9 per cent to 475 MMSCM in February. Cumulatively, gas output dipped 8.5 per cent to 5,806 MMSCM in April-February period of 2017-2018.

OIL IMPORTS

India’s crude oil import in value terms increased 25 per cent to $80 billion in the April-February 2017-18. In February alone, oil imports were up 6 per cent 29 per cent at $8.1 billion.

The share of OPEC countries in India’s crude imports dipped to 82.6 per cent in the April-February 2017-18 period as compared to 87.3 per cent in the corresponding period previous fiscal (2016-17) as import volumes rose from Non-OPEC nation’s including Mexico, Brazil, US, Canada, Russia, Kazakhstan and Sudan.

CRUDE IMPORT DEPENDENCE

India’s import dependence for sourcing crude increased to 83 per cent in April-February 2017-18 from 82 per cent in the corresponding period. In February 2018, import dependence rose to 84 per cent from 82 per cent in the same month previous fiscal (Feb 2017).

NATURAL GAS IMPORTS

Liquefied Natural Gas (LNG) imports increased 6.12 per cent to 23,910 MMSCM during April-February period of current fiscal. For February alone, imports were recorded down 1.04 per cent to 2,110 MMSCM. Of the total LNG import in February, 46 per cent came from Qatar, 9.17 per cent from Australia, 8.41 per cent from France and 7.82 per cent from Nigeria. Netherlands, USA, Malaysia, Norway, Oman, Angola and 3.72 per cent from Equatorial Guinea.